INVESTMENTS IN RECOMPLETION OF OIL WELLS
The fall in oil prices in 2015 severely affected the Oil and Gas Industry, but investments in oil business have not ceased to be profitable.
With oil prices fell prices on a land and low-productivity wells. Also fell prices for the services. Currently is possible to buy low productive well for $ 50,000-$ 60,000, and for owners of low productive wells full recompletion (including all the necessary services) for increase the productive inflow from 0-5 bbl./day to 25-35 bbl./day (for example) will cost $ 60,000-$ 100,000 (meaning recompletion with hydro-slotting perforation technology). Invested funds are returned in less than a year, but then the well begins to make a profit during 10-15 years.
The table below clearly shows all calculations for investments and profit. Table has a range for oil prices $ 10-$ 50 per bbl., and possible getting productive inflows from 10 bbl./day to 50 bbl./day.
Consider the averagedexample. Assume that the price of oil $ 30 per bbl. Assume that you have invested money in the amount $ 100,000 in recompletion of low productive oil well with hydro-slotting perforation technology, and after that you got productive inflow 30 bbl./day.
At the top of the table looking for a column with productive inflow 30 bbl./day. It is 900 barrels of oil per month, and accordingly 10950 barrels of oil per year. Looking in the left column of the table price for oil $ 30 per barrel. The next column: investments for recompletion $ 100,000. The next column: payback in months (under the column with productive inflow 30 bbl./day): 3.7 month. This means, that you will return back your invested money in four and a half months in near 111 days. In the yellow sell of the same column you'll find annual profit $ 328,500 per year. Effect after recompletion with hydro-slotting perforation technology lasts 10-15 years.
This means, that investing one-time $ 100,000 you return your money back in 111 days, after that you will receive an annual profit $ 328,500 every year during 10-15 years, that accordingly be $ 3,285,000-4,920,000. This is only from one well. Perhaps then you will want to sell this well and buy another low-production well for the next recompletion.